Netflix announced on Friday, December 5, that it had reached a deal to buy the film studio Warner Bros and its streaming service, HBO Max, with the equity value believed to be $72 billion.
The Warner Bros studio has a huge library that includes Friends, The Big Bang Theory, ER, The West Wing, Gilmore Girls, and Gossip Girl on the TV side; Hanna-Barbera staples like Scooby-Doo and The Flintstones, as well as Looney Tunes and Animaniacs on the animation side; and The Wizard of Oz, the Harry Potter franchise, Bonnie and Clyde, A Clockwork Orange, and Blade Runner.
"Our mission has always been to entertain the world," said Ted Sarandos, co-CEO of Netflix when the news broke. "By combining Warner Bros. incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we'll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling."
"Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most," said David Zaslav, President and CEO of Warner Bros. Discovery. "For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come."
But what does this mean for your favorite movies and shows, such as the DC Universe, and Game of Thrones?
Will DC Comics now be part of Netflix's portfolio?
Yes. This means that the characters we love such as Batman, Supergirl, and Superman will be on Netflix, and you will probably be able to pick them as your profile avatar.
Former DC films and TV shows will also be available on Netflix.
Will DC Comics movies still be released in theatres?
This is where it gets sticky.Netflix notoriously does not like to put its movies in theaters, and only gives potential awards season films a limited run in major cities. What does this mean for blockbuster movies such as DC Comics? Under the proposed acquisition, Netflix has promised to "maintain Warner Bros.’ current operations" and "build on its strengths, including theatrical releases for films".
It remains to be seen if the contract allows for a shortened theatrical window.
Where will I watch Game Of Thrones and its spin-offs?
The entirety of the Game of Thrones series and other critically acclaimed HBO shows (Succession, The White Lotus, The Wire) will be available on Netflix.
Will HBO Max cease to exist?
The merger could see HBO Max and Netflix both continue to exist, although that seems unlikely, and confusing for audiences. What is more likely is that HBO Max would fold, and Netflix would become a mega streaming service.
They currently have over 33% of the market share of streaming audiences combined, with Netflix at 20% and HBO Max at 13%.
Will Netflix prices rise?
It stands to reason that prices will rise to reflect the breadth of the catalogue now available to audiences.
What division is Netflix buying from Warner Bros?
Netflix is only interested in the film studio and it's streaming services. Warner's Global Networks Division, which includes cable networks such as CNN, Discovery Channel, TNT, HGTV, Animal Planet, Food Network, Investigation Discovery, TLC, TruTV, Turner Classic Movies and Cartoon Network, will become a brand new publicly-traded company.
What are the concerns around this merger?
This merger will create a streaming behemoth, which promises more content on less platforms for subscribers but raises huge concerns about reduced competition, higher prices, the future of theatrical releases, and where the power in Hollywood lies. It will also potential lead to job losses.
"The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent," a statement from the Writers Guild of America said, slamming the deal.
"The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers. Industry workers along with the public are already impacted by only a few powerful companies maintaining tight control over what consumers can watch on television, on streaming, and in theaters. This merger must be blocked."
European Cinema trade body UNIC (International Union of Cinemas) also criticized the deal.
"Were it to be allowed to go ahead, this deal represents a double risk. If a studio disappears, that will inevitably mean that cinemas will have fewer films to screen for their audiences, leading to reduced income and significant cinema closures and job losses in the industry. And in many ways, this is worse than the acquisition of one movie studio by another, as we saw with Disney’s acquisition of 20thCentury Fox a decade or so ago," Laura Houlgatte, CEO of UNIC, said.